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What's a retail employee worth to Apple?
Every time you walk into an Apple store and are greeted by one of those friendly badged employees you might see someone who wants to help you with your question or grab you the latest Apple product, but when Apple looks at that same employee they see 320,000 George Washingtons. That's right, each Apple retail employee is worth an average of US$320,000 in revenue per year to Apple. That's according to Horace Dediu from Asymco who got that number from combining information from ifoAppleStore and Apple's quarterly reports. If you look more closely at his report you'll note that the $320,000 figure is for 2011 and that its much lower than the $481,000 per employee Apple brought in in 2010. However, Dediu only calculated the first three calendar quarters in 2011, so by the end of this month after holiday sales are done, each Apple retail employee is now probably worth more than half a million dollars to Apple. And with 30,000 retail employees across the globe, that's a lot of cheddar.
Apple just arrived at Grand Central Terminal, we hop aboard (video)
For many New Yorkers, Grand Central Station Terminal is where you go to escape the island -- not to leisurely browse aisles of iPhone accessories, or pop in for a Genius Bar appointment. But apparently Apple has a slightly different vision for the city's transportation hub, opening its fifth NYC store along the main hall's 23,000 square foot east balcony. We dropped by for the grand opening this morning, which came complete with the standard Apple Store t-shirt giveaway and what seemed like hundreds of red shirt-clad retail employees. As NYC's gateway to Connecticut, Grand Central is typically incredibly crowded during rush hour, but the enormous sunlight-filled main hall was packed to the brim today with spectators -- eager customers queued up in a hallway out of view, beginning early this morning. The store itself is huge, occupying the entire east balcony and several side rooms, with a large genius bar, training area and accessory alcove at either side. Eager to pop in for a visit? Thumb through the gallery below to step inside, and jump past the break to experience the cacophonous chaos at Grand Central.%Gallery-141464%
Grand Central Terminal Apple Store previewed for media, opens Friday
Apple previewed its latest retail development for the press today. The Grand Central Terminal store in New York City, opening Friday, will be among the largest Apple stores in the world; it overlooks the Main Concourse from the East and North East balconies of Grand Central Terminal. %Gallery-141279% Check out the gallery of inside shots above, courtesy of NPD's Ross Rubin. He reports that the store includes an "express checkout" area ("like an Apple Store inside the Apple Store") and dual Genius Bars. Business Insider posted some nice shots of what the store looks like on the inside and Fortune has a video walkthrough, embedded below. As an extra bonus to commuters, Apple is providing free Wi-Fi throughout the terminal. Also, the store will be the first to offer 15-minute Express Workshops of "tips and tricks in a streamlined format to serve customers on a tight schedule," according to a press release issued by Apple this morning. The Grand Central Terminal store opens to the public this Friday, December 9, at 10 AM. Over three hundred Apple employees will be on hand to help the expected rush of holiday shoppers. Normal business hours will be from 7 AM to 9 PM, Monday through Friday; Saturday 10 AM to 7 PM, and Sunday 11 AM to 6 PM. Our own Mike Rose will be scoping out the opening; if you see him on Friday, say hello (he'll be the guy in the TUAW t-shirt).
New York State probes Apple's deal for NYC Grand Central Terminal space
Exactly one day after the terms of Apple's rental deal for its new Grand Central Terminal retail store became public, New York State investigators are looking into whether the Metropolitan Transit Authority gave "overly generous terms" to Apple for the space. The New York Post reports that the state comptroller is investigating the terms of Apple's lease and other facets of the MTA's business dealings "The article in the New York Post about the MTA's contract with Apple in Grand Central Terminal is a cause for concern," comptroller Thomas DiNapoli said. "This is a prime property, and I intend to make sure that the MTA hasn't given away the store." Apple did indeed receive quite generous terms for its lease; alone among all businesses in Grand Central Terminal, Apple will not have to share a percentage of its sales with MTA, and its rent for the space is much lower than most other tenants. However, Apple also paid the previous tenant US$5 million to clear out early, and Apple is paying for infrastructure improvements to the space out of its own pocket. MTA expects its generous rental terms to pay off in the long run; it predicts the presence of an Apple Store will increase traffic in Grand Central Terminal and thereby increase revenues in surrounding businesses which do yield a proportion of their sales to MTA. However, our own back-of-the-envelope calculations show that in order for MTA to receive a similar return on investment from Apple compared to the landlord of Apple's 5th Avenue space, other Grand Central Terminal businesses will need to increase sales by (a perhaps unrealistic) 7.5 percent. Apple's Grand Central Terminal retail store will open on December 9.
Details on Apple's Grand Central Terminal retail deal
Apple is soon set to open a huge new store in New York City's Grand Central Terminal, and it's expected to be one of its largest and most profitable venues. The New York Post has obtained some details on the deal Apple got on the space, and let's just say I want someone from Apple in my corner negotiating for me if I ever buy a house. First, while it's expected that Apple's Grand Central Terminal location will see US$100 million in annual sales, unlike all other retail entities in Grand Central, Apple won't be sharing a percentage of that revenue with the Metropolitan Transportation Authority. Second, Apple is reportedly paying only $60 per square foot for renting the space, far below what most other tenants are paying. The Post cites an upcoming Shake Shack burger restaurant as one example; that outlet will pay $200 per square foot in rent. MTA has justified the terms of the deal by saying it expects the Apple Store to generate significantly increased traffic and higher sales at nearby stores where it does reap a percentage of revenues. By comparison, Apple's 5th Avenue location reportedly generates $400 million in annual sales, with approximately $15 million of that going to the location's owner. In order for the MTA to see similar percentages, sales at outlets adjacent to the Grand Central Terminal Apple Store will need to rise by a minimum of 7.5 percent. That's assuming the estimates of $100 million per year in Apple Store sales and MTA's $500,000 revenues per 1 percent increase in sales are both correct. There's no way of knowing whether sales will rise by that much -- the new Apple Store hasn't even opened yet -- but count me among the skeptical.
Grand Central Apple Store reportedly close to opening
It's possible that Apple's flagship Grand Central Terminal store in New York City is set to open as early as this (Black) Friday, November 25th. If 9to5Mac's sources are to be believed, Apple will announce the store opening tomorrow by removing the black boards that are currently hanging around the store, blocking views to the construction and setup inside. The Black Friday opening of the Grand Central store was first reported by PhoneArena back in October. Apple's Grand Central Terminal store will be notable for many reasons. It will be the largest Apple store, by square footage (23,000 sq ft, including offices and stock rooms), in the world. It will also have a staff of over 300 (impressive, but not a record) to take care of customers from the potential pool of 750,000 commuters that stream through Grand Central each day. Apple's grand openings are usually massive events in themselves, with hundreds lining up at the door hours -- sometimes days -- before the opening. If the store is a flagship store, like the Grand Central one is, the lines of waiting Apple fans can reach the thousands. Throw in a Black Friday opening and you're looking at potentially the largest group of waiting shoppers in the world. Of course since Grand Central Station is one of America's largest travel hubs, due to security issues it's possible the City of New York may not allow early lines to form for the grand opening.
Apple training retail managers on union awareness
CNET has obtained an internal document which details training Apple has given its retail managers on how to respond if employees unionize. Said training has likely already taken place by the time of this publication, and it's mandatory for all new Apple Store managers. According to the training description, "This course is intended to provide managers with a practical understanding of how unions affect the workplace, how and why employees organize, and the legal do's and don'ts of dealing with unions. This is a mandatory class for all new managers, and is required biannually for all managers." This training comes about six months after Apple Retail workers in the Pacific Northwest made an attempt at unionizing. "We work in one of the most demanding retail environments while suffering through unfair treatment and compensation among many other various issues," the group claims, and CNET has cited many other practices the group considers unfair. Unionizing would allow retail employees the opportunity to negotiate these grievances, but CNET notes that an expert on unions told them that Apple's gargantuan retail success makes it unlikely that any such negotiations would go very far.
Apple Store iOS app adds in-store purchasing, we go hands-on (video)
If you've been to an Apple Store recently, you're probably familiar with EasyPay -- Apple's not-always-so-easy handheld checkout system that enables employees to process transactions on the floor, sending a receipt to your inbox. Well the latest Apple Store iOS app eliminates the middleman -- those t-shirt and jeans-sporting retail employees -- letting you process the transaction on your own iPhone 4 or 4S, completely eliminating any need for human interaction. The tool is currently limited to accessories, so you won't be able to pick up an iPad, "scan" it with your phone, and walk out of the store. What's unclear is how Apple will prevent dishonest folks from shoplifting, since your iPhone lacks the ability to spit out those nifty white shoulder bags or blue purchase stickers. We took the app for a spin, running up a $107.79 tab with an Airport Express. As expected, checking out is painfully simple -- after you launch the app from within a store, a popup window gives you the option for EasyPay. You then hover over the item's barcode using the iPhone's camera, and click through to complete your purchase using the default credit card from your iTunes account. We then walked right out the front door with our purchased Airport in hand. You'll still need to head to the registers to return an item, however, which we were able to do within minutes of making our purchase. Jump past the break to see how it works.%Gallery-138810%
Apple retail chief Ron Johnson officially departs
Ron Johnson, Apple's Senior Vice President of Retail Operations for the last 11 years, has officially left Apple today. Back in June, Apple said that Johnson would be leaving the company on November 1st to become the CEO of J.C. Penney. Johnson joined Apple in 2000 and is largely credited with helping Apple gain a distinct retail presence. Among his contributions to Apple retail stores was the Genius Bar, which is now found in every Apple store and something Steve Jobs was initially against. Interestingly, Apple hasn't yet found a replacement for Johnson. In August the Cupertino company hired the recruiting firm Egon Zehnder International with Steve Jobs's order to find an international replacement for Johnson. As I wrote then: Apple has repeatedly said that their international expansion is a driving force in both their profits and sales. Given that China, a country which Apple had virtually no presence in until very recently, seems key to Apple's growth, its likely that Ron Johnson's replacement could very well come from the Asia Pacific territory or someone with extensive knowledge and experience in the territory. Ron Johnson's name, picture, and bio have already been removed from Executive Profiles page.
Apple retail stores will close briefly on Wednesday for Steve Jobs memorial
According to Reuters, Apple's US retail stores will be closed for part of Wednesday, October 19 so retail employees can take part in the companywide memorial celebration of Steve Jobs. The event takes place from 10 to 11:30 AM Pacific time, so it's likely US retail stores will be shut for at least that long while the event is broadcast to the company's stores. Californian Apple Stores are reportedly not accepting reservations for tech support or tutorials during that morning. The Wall Street Journal reports that stores will be closed for "at least an hour," but the event may take up to three hours. International Apple Stores will view a re-broadcast of the memorial. Reuters did not confirm if Apple's retail stores outside the US will be closed. Apple released the iPhone 4S on October 14, but its homepage hasn't announced that fact; instead, it remains the simple memorial to Steve Jobs that has been there since the day of his death. Shutting Apple Stores and allowing retail employees to take part in the ceremonies despite the high demand for the newest iPhone is a classy move on Apple's part.
North American iPhone 4S sales now reservation-only at Apple stores
Apple updated its "How to Buy" iPhone 4S page earlier today with instructions detailing how US and Canadian customers can go about getting an iPhone 4S. The company is now insisting that prospective buyers first reserve the new phone online before heading into an Apple Store to buy it. From the page: iPhone 4S is available in store by reservation only. Reserve yours after 9:00 p.m. tonight for pickup tomorrow. When you come in, you'll choose a carrier and plan, and we'll get your iPhone up and running before you leave the store. This shouldn't be too much of a shock after Apple announced an astounding 4 million iPhone 4S sales in the first weekend. Apple obviously wants to control the flood of people heading for retail stores; reservations are a way to avoid sending people away disappointed should they show up expecting to get an iPhone 4S only to be told the store is sold out. However, MacRumors notes that it seems unlikely that Apple would refuse to sell unreserved phones to walk-in customers and theorizes that Apple will take reservations online, but will then sell any extra daily stock to customers on a walk-in basis.
Regent Street Apple Store sees record crowd
Protect Your Bubble, a UK insurance firm, today conducted a survey of the line of people waiting to buy an iPhone 4S outside London's Regent Street Apple Store. The survey, which was conducted for no other reason than so Protect Your Bubble could get a little free brand recognition on the back of the iPhone 4S, did however reveal some interesting stats. Most notably, the line for the iPhone 4S launch is the longest in the history of iOS device launches for the Regent Street store (see infographic above or view the whole thing here). Not bad at all for a device that was more of an evolution than a revolution. Coming later today: More iPhone 4S surveys from Luvs Diapers, Edwardo's Pizza in Chicago, and Research in Motion.
Apple giving employees extra paid time off this Thanksgiving for a job well done
Apple is on a roll. Mac sales are higher than ever, the iPad owns the tablet market, and the company just sold one million iPhones in 24 hours. In honor of all that Apple has achieved this year, the company is giving its employees some extra time off this upcoming Thanksgiving holiday. As first published by MacGeneration, Tim Cook sent the following email to all Apple employees this week: Team, I consider it an honor to come to work every day alongside the most innovative and most dedicated people on earth. This is an extraordinary time to be at Apple, and it's all made possible by your incredible efforts. We've had a record-setting year so far and we're heading into the holidays with the strongest product lineup in our history. Customers are absolutely in love with the iPad 2, and the amazing new iPhone 4S is off to the best start of any iPhone we've ever made. The Mac is soaring to new heights with OS X Lion, and on the eve of its 10th birthday, the iPod is still the world's most popular music player. In recognition of the hard work you've put in this year, we're going to take some extra time off for Thanksgiving. We will shut down with pay on November 21, 22 and 23 so our teams can spend the entire week with their families and friends. Of course, Retail and some other groups will need to work that week so we can continue to serve our customers. If you're in one of these groups, please check with your manager about taking time off at a later date. Our international teams will schedule their three-day shutdowns this quarter at a time that's best for them. Details will be available on AppleWeb. I hope everyone enjoys this much deserved break. Tim As noted in the email, retail workers will not get the same days off (they need to be in the stores to continue to sell products during the busy shopping season); however, they will all receive three extra days of paid time off after the holidays. Apple employees in other countries will also get an extra three days of paid time off. Contrary to some reports, this is actually not the first time Apple has done this. When I worked for the company, the same extra Thanksgiving time off was given twice during my stint. Also, for those of you wondering, "AppleWeb" isn't some new Apple Internet product. It's Apple's name for the company-wide intranet.
London's Covent Garden Apple Store hit by burglars
In what is the most high-profile Apple Store robbery to date, a gang of thugs carried out a smash-and-grab raid on London's Covent Garden Apple Store. The store, which opened fourteen months ago, is Apple's second flagship store. It was built in a remodeled 19th century building and features a glass roof over a courtyard that was originally designed for delivery of merchandise by horses. The Guardian reports that shortly before 1 AM a gang of seven masked thieves rode up to the Apple Store on mopeds and motorcycles and smashed one of the store's windows. They then proceeded to grab Apple devices including iPads, and then jumped back on their vehicles and sped away. Shortly after the burglary, police in the London neighborhood of Islington (about a 10 minute ride away from Covent Garden at that time of night) spotted one of the vehicles used in the raid and two men were arrested at the scene. Scotland Yard said that some stolen Apple devices were recovered from their possession. The police are asking anyone else who might have information about the burglary to contact the Metropolitan Police Service. [image credit: Rob Shoesmith]
I'll take the MacBook, hold the macchiato: no coffee in Apple Stores, please
Esquire's Elizabeth Gunnison wrote a speculative piece about cafés in Apple Stores. In short, she thinks it's a great idea. In her piece she writes: Think about it: Apple's retail stores are purpose-built for sucking people in and holding them hostage for hours, what with the rows and rows of shiny new devices, the Genius Bar, and their own roster of educational seminars. Why not add a café? Food and beverage margins are nothing compared to what Apple makes off its iPads and Macbooks, but a café would be just one more way of drawing shoppers toward the mothership and keeping them there. Interestingly enough, Apple itself explored the idea of coffee-centric retail in the 1990s, and then dropped it. It's not hard to understand why: the concept is clever, but it wouldn't work. Apple Stores are sleek and sexy and...noisy. When I go to a café, I want free Wi-Fi, sure, but I also want to hear myself think. Even the most crowded Starbucks in London offers at least one corner that's relatively quiet. And that's because sales people aren't constantly pitching the latest product while customers ask question after question. Apple Stores are sleek, sexy and sterile. Café's are usually the exact opposite. I want the place where I buy my tech to look like a spaceship. I want the place where I buy my coffee and read the paper to be comfy and cozy, not blindingly white. If Apple were to add cafés to its retail stores it would require a big redesign. Sure, it could work in some of the bigger stores in London, New York, and Paris if Apple added a dedicated café -- one that looked like a café, and not a stand that some bored employee set up with his Nespresso machine. But smaller stores, like the one in Northbrook, Illinois, can't gut half of their retail space to sell coffee. As for the idea of cafés as a customer draw...Apple hardly needs that gimmick. It's having no trouble attracting retail customers. In fact, some people just hang out there, despite the lack of coffee. The last thing Apple Stores need are hipster geeks who aren't buying anything sticking around even longer checking their Facebook messages on a 27" iMac while they wait for another refill of their macchiato. Let Apple sell computers; Starbucks can worry about the coffee. [photo adapted from work by Roger Price]
Daily Update for Sept. 2, 2011
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes, which is perfect for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for listening through iTunes, click here. No Flash? Click here to listen.
For the third weekend in a row Apple opening three more stores
This weekend will mark the third time Apple has opened three stores in as many weeks. That's nine new stores in only three weeks -- quite an expansion and, you guessed it, almost a third of the 30 new Apple Stores the company plans to open this quarter. The new stores opening this weekend are all international ones. The three stores all open this Saturday, September 3. The first is the Campania store in Naples, Italy. It's doors open at 10AM and will be the first of Apple's seven Italian stores to open south of Rome. Then at 9:30 AM in Augsburg, Germany the City-Galerie store opens. The City-Galerie store will be Apple's sixth in Germany. Finally at 9:30 AM the Mapleview Centre Apple store will open in Burlington, Ontario, Canada. Mapleview will be Apple's 21st Canadian Store. Last week Apple opened stores in Arkansas and North Carolina in the US and in Sénart in France. [via ifoAppleStore]
Daily Update for August 30, 2011
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top stories of the day in three to five minutes, which is perfect for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for listening through iTunes, click here. No Flash? Click here to listen.
Apple Store climbs in annual retail ranking
Chain Store Age Magazine publishes an annual list of the 100 largest U.S. retail chains. As you'd expect in the rather stodgy retail biz, there were few changes in this year's list except for one company -- Apple. Apple's retail business jumped from 57th place on the list last year to 34th place in 2011. The results are based on 2010 revenues of US$9.82 billion. The top 20 companies on the list are almost exactly the same as they were last year, with a few position swaps here and there. Apple, not unexpectedly considering the rate of new Apple Store openings, was a lone exception. Like Apple, many retailers are looking internationally for opportunities to grow revenues. Some retailers are downsizing or reducing the number of stores; once again, Apple appears to be bucking this trend by upsizing and adding stores. The full survey from Chain Store Age Magazine can be downloaded here for further study.
New Southgate, Florida Apple Store confirmed
The Herald-Tribune is reporting that Apple is planning to bring a retail store to Southgate Mall in Sarasota, Florida, which could open by December. Currently Southgate Mall is going through major renovations, the end of which will bring 30 new stores to the mall. Westfield, who owns the mall, is moving two of its current tenants, LensCrafter and GNC, from the number 14 and 15 spaces in the mall in order to accommodate the new Apple store. When completed the new Southgate Apple Store will be 42-feet wide, with a total square footage of 4,100 feet. As noted by ifoAppleStore, the Southgate Mall store will fill an Apple store in the area of Florida's west coast south of Tampa that has no stores.
